Is there a real relationship between expensive houses and better public schools? A new report sheds light on the connection between property value and school quality.
Families often choose the location of their next home by where their children will go to school. As focus on school performance has become more astute thanks to a rising emphasis on test scores and completion rates, home shoppers have become more cautious in their selections as well. Do schools directly affect home values in a neighborhood? The answer may depend on where you are shopping for your next home.
Home Values and School Spending
According to the National Bureau of Economic Research
, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20. These findings indicate that additional school expenditures may benefit everyone in the community, whether or not those residents actually have children in the local public school system.
While the findings of this national study are compelling, they do not paint a full picture of the link between school spending and home values. According to the website, some school districts may operate more efficiently, so while expenditures are lower, the quality of education is still high. In addition, the size of the district or proximity of schools from neighboring districts could impact the perception of a specific school’s value, beyond the simple expenditure formula.
Researchers that published the report also found that wealthy school districts, where home values may tend to be higher, spend their funding more efficiently.